Question

What form is filed with the IRS to request a change in accounting methods?

Answer 1

* Inorder to set up accounting methods and to request a change in accounting methods a copy of Form 3115 must also be filed with IRS National Office, and it should be no later than when the original is filed with the federal income taxtreturn for the year of change.

Accounting methods that require approval from the IRS to make out the changes include switching from a cash basis method to an accrual basis method or vice versa.It may also include change in the inventory valuation methods, change in depreciation or amortization methods etc.

The process for request approval for change in accounting methods are as follows:

*Attaching the original Form 3115 to your federal income tax return for the year of change. Form 3115 should be filed as early as possible to provide the IRS with adequate time to respond prior to the due date of the filer's return for the year of change.